CANADA STOCKS-TSX rises on gold miners, Bombardier

4 Min Read

* TSX up 79.38 pts, or 0.7 pct, at 11,481.16
* Gold miners lead gains
* Bombardier Inc up 6.6 pct after jet deal
* Rising Spanish debt yields spook investors
By Jon Cook
TORONTO, June 12 (Reuters) - Canadian stocks were higher in
volatile trade on Tuesday as gains from gold miners and a
windfall deal for Bombardier Inc offset concerns about
Europe's lingering debt crisis.
Eight of Canada's 10 main sectors were higher. The
heavily-weighted materials group led gains, climbing 1.4 percent
as gold mining shares rebounded from Monday's selloff.
Leading the charge was Barrick Gold, up 0.9 percent
to C$39.94, Goldcorp Inc, which rose 1.3 percent to
C$40.44, Eldorado Gold Corp, rising 3 percent to
C$12.36, Kinross Gold, up 1.5 percent at C$8.61, and
Yamana Gold, which climbed 1.78 percent to C$16.50.
A mega jet deal involving Bombardier Inc also
helped keep Canadian stocks in positive territory. Bombardier
shares jumped 6.6 percent to C$3.89 on Tuesday after news that
the Canadian planemaker had won a $7.3 billion aircraft order
with NetJets, a private jet-sharing company owned by Warren
Buffett's Berkshire Hathaway Inc.
"Their business jet business was decent and this is just a
cherry on top," said Paul Hand, managing director at RBC Capital
Markets. "It's the commercial project that is the big question
mark and has been the drag on the company."
At 11:16 a.m. (1516 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 79.38 points, or 0.7
percent, at 11,481.16. It briefly dipped into negative
territory, hitting a session low at 11,385.50.
"It's not a ringing endorsement of anything," said Hand on
the Tuesday's TSX performance, adding gains were likely to be
fleeting in the face of deteriorating conditions in Europe.
"It's just the litany of so many problems that it's created an
increased level of caution."
Markets were shaky on Tuesday after Spain's 100 billion euro
($125.11 billion) bank rescue failed to calm investors, who
remained concerned bailout-related payments could rank ahead of
regular government debt in the queue for repayment.
Spanish government bond yields were at their highest since
the euro was launched in 1999 on concern over how difficult it
may be for Madrid to access debt markets in the longer term.
Raising the stakes in Europe's debt crisis, Austria's
finance minister said Italy, the euro zone's third economy, may
need a financial rescue because of its high borrowing costs.
Despite the European headwinds, the Canadian financial index
edged up 0.7 percent. Gains were led by top insurers Manulife
Financial, which rose 2.3 percent to C$10.93, and
Sunlife Financial, up 1.9 percent at C$21.74.
In other company news, shares of Agrium Inc rose 2
percent to C$82.99 after the Canadian fertilizer maker and farm
products retailer said on Tuesday it expects its second-quarter
earnings to be at or near the top of its forecast range due to
higher prices for some of its wholesale fertilizer products.